\u3000\u3 China Vanke Co.Ltd(000002) 050 Zhejiang Sanhua Intelligent Controls Co.Ltd(002050) )
Core view
In 2021, the net profit attributable to the parent company was + 15.2% year-on-year, and the performance achieved steady growth. The company achieved a revenue of 16.02 billion yuan in 2021, a year-on-year increase of + 32.3%; 1.68 billion yuan returned to the parent, a year-on-year increase of + 15.2%; Deduct 1.49 billion yuan of non return to parent, a year-on-year increase of + 17.1%. In 2021q4, the revenue was 4.301 billion yuan, a year-on-year increase of + 22.3% and a month on month increase of + 6.3%; The parent company returned 390 million yuan, with a year-on-year increase of + 5.7% and a month on month increase of – 16.6%. The gross profit margin in 2021 was 25.68%, up to -2.16pct (which is expected to be mainly due to the increase in ocean freight rates, the lag of the price adjustment mechanism after the rise in raw material prices, and the increase in the proportion of auto components and components). The expenses are properly controlled, and the rate of four expenses in 2021 is 13.49%, with a year-on-year rate of – 3.15%. Among them, the R & D expense rate increased by 0.4pct. From January to February 2022, the company achieved a revenue of about 3.06 billion yuan, a year-on-year increase of about 40%, and a return to the parent of about 290 million yuan, a year-on-year increase of about 20%.
With the large volume of mainstream EV customers, the performance of auto zero is expected to continue to be realized. In 2021, the auto zero business achieved a revenue of 4.8 billion yuan, a year-on-year increase of + 94.5%; The return to the parent was 580 million yuan, a year-on-year increase of + 74.8%; Among them, new energy vehicle products account for 83%; The net interest rate of auto zero business is 12.1%. As the leading enterprise of deep ploughing heat management track, the company expects that the auto parts business will continue to accelerate in 2022. Benefiting from the high prosperity of new energy market, the increase of customer volume and the proportion of component products, as well as the promotion of new production lines, the company’s auto parts business revenue is expected to be + 60% – 70% year-on-year in 2022; In addition, with the expansion of the company’s delivery scale and the improvement of the price linkage mechanism of raw materials, the auto zero business is expected to continue to maintain a high profit level.
The refrigeration business is steady, benefiting from the trend of commercial refrigeration increment and energy efficiency upgrading. In 2021, the revenue of air conditioning and refrigeration business was RMB 11.22 billion, a year-on-year increase of + 16.4%; The return to the parent was 1.11 billion yuan, a year-on-year increase of – 5.6%. The refrigeration business of the company is expected to benefit from the increment of commercial refrigeration business driven by the cold chain transportation market and the upward penetration rate of electronic expansion valve under energy efficiency upgrading (expected to increase to more than 60%), and the revenue of air conditioning business is expected to increase by 20% – 30% year-on-year in 2022.
Risk tip: the sales volume of downstream customers is lower than expected, the price of raw materials rises, and the impact of core shortage.
Investment suggestion: for the automotive thermal management leader and Tesla core target, maintain the “overweight” rating. Based on the sound operation of the company, the growth of commercial refrigeration business in 2022 and the continuous realization of zero performance of steam, considering the impact of raw material costs and exchange rate fluctuations, slightly reduce the net profit in 2021 / 2022 / 2023 to RMB 1.684/23.15/2.903 billion (originally RMB 23.37/3.045 billion in 2022 / 2023), the corresponding EPS is RMB 0.47/0.64/0.81, corresponding to RMB 25.9xpe in 2022, Maintain the “overweight” rating.
